Upstart (NASDAQ:UPST) Holdings, Inc. (NASDAQ:UPST) CEO Dave Girouard has sold 3,361 shares of company stock, totaling approximately $128,878, according to a recent SEC filing. The transactions occurred on August 20, 2024, with the shares sold at a weighted average price of $38.3453, ranging from $37.95 to $38.91.
The sale was executed to cover tax withholding obligations related to the vesting of restricted stock units (RSUs), as noted in the footnotes of the filing. Following the sale, Girouard still owns 61,512 shares directly, with additional indirect holdings through trusts and other entities.
The shares directly sold by Girouard represent a small portion of his total associated holdings in Upstart, a company that specializes in finance services. The filing indicates that Girouard also has indirect ownership in millions of shares through various trusts for which he or associates serve as trustees.
Investors often monitor the buying and selling activity of company insiders for insights into the company's performance and management's confidence in the business. While the sale of stock by a CEO can draw attention, it is not uncommon for executives to sell shares for personal financial planning or to meet tax obligations.
Upstart's stock performance and market activities are closely watched by investors, especially during periods of insider transactions. The company's latest developments, financial reports, and insider trading can impact investor sentiment and the stock's market position.
For further details on the CEO's transactions and current holdings, interested parties can refer to the full information provided in the SEC filing.
In other recent news, Upstart Holdings, Inc. reported Q2 2024 financial outcomes, highlighting sequential growth and a move towards EBITDA profitability. The firm introduced a new credit pricing model, M18, and expanded its product offerings. Despite a 9% year-over-year decline in fee revenue to $131 million, Upstart saw a 31% increase in loan transaction volume and projects positive adjusted EBITDA in Q4 2024. Additionally, the company has forecasted total revenues of approximately $150 million for Q3 2024.
In a significant partnership, Upstart has teamed up with AMOCO Federal Credit Union to offer AI-driven personal loans, aiming to enhance the lending experience for AMOCO's 106,000 members and the wider community. This collaboration integrates AMOCO into the Upstart Referral Network, allowing qualified loan applicants to receive personalized offers through an AMOCO-branded online application process.
These recent developments reflect Upstart's ongoing efforts to refine its AI-driven lending platform and its strategic move towards a more sustainable and diversified funding structure.
InvestingPro Insights
As investors scrutinize the recent insider selling by Upstart Holdings, Inc. (NASDAQ:UPST) CEO Dave Girouard, it's valuable to consider the company's broader financial context. According to real-time data from InvestingPro, Upstart has a market capitalization of $3.64 billion, reflecting the size and scale of the business within the financial sector. Despite the CEO's stock sale, which is often a routine matter, Upstart's stock has demonstrated significant price volatility, a point emphasized by two separate InvestingPro Tips that highlight the stock's tendency for large price swings.
Moreover, the stock's performance over recent months has been notable, with a 38.11% return in the last month and an even more impressive 55.38% over the last three months. This suggests a strong short-term bullish trend in the market's valuation of the company. However, analysts contributing to InvestingPro do not expect the company to be profitable this year, which may give investors pause as they balance the stock's growth prospects against its current earnings performance.
Another key metric for investors is the Price / Book ratio, which currently stands at 6.12 for Upstart, indicating a high valuation when compared to the company's book value. This could suggest that the market is pricing in future growth or potential that may not yet be reflected on the balance sheet. Additionally, while Upstart has not been profitable over the last twelve months, its liquid assets exceed its short-term obligations, providing some financial stability.
For investors seeking a more in-depth analysis, there are 11 additional InvestingPro Tips available, which can offer further insights into Upstart's financial health and stock performance. These tips can be accessed by visiting the InvestingPro platform at https://www.investing.com/pro/UPST.
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